A Research Project report On IMPACT OF CELEBRITY ENDORSEMENTS ON CUSTOMER PURCHASE

In partial fulfillment of paper CP-402 for the degree of MASTER OF BUSINESS ADMINISTRATION (MBA) (Session 2008-2010) Under the guidance of: Submitted By:

DR.HEMANT SHARMA (Associate Professor , MMIM)

NEHA SHARMA ROLL NO: 1208709

SUBMITTED To:

MAHARISHI MARKANDESHWER INSTITUTE OF MANAGEMENT MULLANA, (AMBALA)

DECLARATION

I NEHA SHARMA, hereby declare that, the project report entitled " Impact of celebrity endorsement on customer purchase submitted by me in the partial fulfillment of the requirement for the degree of Master of Business Administration to MM University, Mullana is original work conducted by me and all data & facts contained in this report are original to the best of my knowledge. I have not submitted this report to any other institute for award of any degree or diploma.

NEHA SHARMA 1208709 MBA 4th sem

CERTIFICATE
This is certify that the project work done on Impact of advertising done by celebrities submitted to MM university, Mullana by NEHA SHARMA in the partial fulfillment of the requirement for the award of degree of Master of Business administration is a bonafide work carried out by her under my supervision and guidance. This work has not been submitted any where else for any other degree diploma. I wish her success in her future.

Mr. Hemant Sharma Faculty, MMIM

Acknowledgement

Words are often too weak mode of revealing ones deep feelings .As the intensity of sentiments deeps, we fumble for words and full in expressions. The same difficulty is being expressed by me as I feel to acknowledge my project guide Mr. Hemant Sharma, who guided me in this project. I am sincerely thankful to her for her help for the completion of this project I am also thankful to my friends who have encouraged me and give me their timely help and cooperation. Their suggestions have been very useful in refining the material.

CONTENTS

TITLE

PAGE NO.

Declaration Certificate Acknowledgement Executive Summary Introduction

2 3 4 6-8 10-19 Review of Literature 24-28 24 24 25 26-27 27 28 28 28 30-44

21-22
Research Methodology Selection of the topic Objective of the study Sampling Procedure and Design Method of Data Collection Analysis and Interpretation of Data Scope of the Study Significance of the Study Limitation of the Study Analysis and Interpretation

Findings and Conclusion Suggestions and Recommendations Annexure Bibliography

46 48 50-51 52

Executive Summary

Celebrities are people who enjoy public recognition by a large share of certain group of people. Whereas attributes like attractiveness, extraordinary lifestyle or special skills are just examples and specific common characteristics cannot be observed, it can be said that within a corresponding social group celebrities generally differ from the social norm and enjoy a high degree of public awareness. This is true for classic forms of celebrities, like actors (e.g. Meg Ryan, Pierce Brosnan), models (e.g. Naomi Campbell, Gisele Buendchen), sports athletes (e.g. Anna Kournikova, Michael Schumacher), entertainers (e.g. Oprah Winfrey, Conan OBrien) and pop stars (e.g. Madonna, David Bowie) but also for less obvious groups like businessmen (e.g. Donald Trump, Bill Gates) or politicians (e.g. Rudy Giuliani, Lee Kuan Yew). Celebrities appear in public in different ways. First, they appear in public when fulfilling their profession, e.g. Pete Sampras, who plays tennis in front of an audience in Wimbledon. Furthermore, celebrities appear in public by attending special celebrity events, e.g. the Academy Awards, or world premieres of movies. In addition, they are present in news, fashion magazines, and tabloids, which provide second source information on events and the private life of celebrities through mass-media channels(e.g. Fox 5 news covering Winona Ryders trial on shoplifting, InStyle). Last but not least, celebrities act as spokespeople in advertising to promote products and services A central goal of advertising is the persuasion of customers, i.e., the active attempt tochange or modify consumers attitude towards brands. In this respect, the credibility of an advertisement plays an important role in convincing the target audience of the attractiveness of the companys brand. Pursuing a celebrity endorsement strategy enables advertisers to project a credible image in terms of expertise, persuasiveness, trustworthiness, and objectiveness.
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To create effective messages, celebrity advertisers also have to consider the attractiveness of the spokesperson. Source attractiveness refers to the endorsers physical appearance, personality, likeability, and similarity to the receiver, thus to the perceived social value of the source. The use of (by corresponding standards) attractive people is common practice in television and print advertising, with physically attractive communicators having proved to be more successful in influencing customers attitudes and beliefs than unattractive spokespersons. This behavior mainly goes back to a halo effect, whereby persons who perform well on one dimension, e.g. physical attractiveness, are assumed to excel on others as well, e.g. happiness and coolness. By proving in her study that each source has different effects on consumers brand perceptions, however warns, that these source dimensions of the celebrity endorser could be treated indistinctive. She therefore urges to pursue a systematic strategy of celebrityspokesperson-selection. This raises the question which famous person to select to promote a companys brand. The next paragraph examines whether, and under what conditions celebrities are appropriate in endorsing products. Marketers pay millions of dollars to celebrity endorsee hoping that the stars will bring their magic to brand they endorse and make them more appealing and successful. But all celebrity glitter is not gold.

Celebrity sources may enhance attitude change for a variety of reasons. They may attract more attention to the advertisement than would non-celebrities or in many cases, they may be viewed as more credible than non-celebrities. Third, consumers may identify with or desire to emulate the celebrity. Finally, consumer may associate known characteristics of the celebrity with attributes of the product that coincide with their own needs or desire.
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The effectiveness of using a celebrity to endorse a firm's product can generally be improved by matching the image of the celebrity with the personality of the product and the actual or desired serf concept of the target market.

There are a number of studies beind done on Celebrity endorsements. Different studies reveal different aspects of Celebrity Endorsement. In this study I shall be studying the impact of Celebrity Endorsement on customer purchases. I shall also be using a number of past studies being done on this topic. Globally , the celebrity endorsement game has come a long way since the UKs Queen Victoria endorsed Cadburys Cocoa in the 19th century. In India, though, the endorsement game is still in its infancy with a major fillip coming in the last five years when it has become a favourite tool for Indian marketers. Industry veterans say that the talent management endorsements, appearances and performancesis well on its way to become a Rs 1,000 crore business. Its the top 50 celebrities who garner more than 80% of all endorsement money. Celebrity endorsers in India fall in three buckets. One set of celebrities are clear that they want money. That is, they will endorse almost any decent brand if the price is right (Shahrukh Khan, Amitabh Bachchan, Shahid Kapoor, Akshay Kumar). So concepts like brand fit do not bother them as brand managers force-fit their image attributes to what suits their products or revel in statements like but his appeals cuts across all segments, geographies, age groups . Then there are stars like Aamir Khan, John Abraham and Ranbir Kapoor who are true to their image attributes and usually work with brands whose traits they think suit their image (Till date Ranbir has reportedly refused ICICI Bank, Minto, Coca-Cola and Chevrolet). These men are also deeply involved in taking the decisions of endorsements. The third set comprises the smaller stars, the ones that dont have any positioning and are interchangeable (Neil Nitin Mukesh, Zaheer Khan, Irfan Khan).
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In the last few years, as demand for the top celebs shot through the roof, their rates too looked skywards. Top stars today charge anywhere between Rs 11 .5 crore a day and industry executives say that even during the slowdown, the rates didnt slide but kept growing albiet, at a slower pace. The stars get a disproportionate amount of money to endorse a product. Their earning per day for endorsing a product is much higher than what they would earn in a day in a movie or a cricket match, says Manish Porwal, exCEO of Percept Talent Management.

CHAPTER -ONE

INTRODUCTION Businesses have long sought to distract and attract the attention of potential customers that live in a world of ever-increasing commercial bombardment. Everyday consumers are exposed to thousands of voices and images in magazines, newspapers, and on billboards, websites, radio and television. Every brand attempts to steal at least a fraction of an unsuspecting person's time to inform him or her of the amazing and different attributes of the product at hand. Because of the constant media saturation that most people experience daily, they eventually become numb to the standard marketing techniques. The challenge of the marketer is to find a hook that will hold the subject's attention.
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Also from a marketing communications (marcoms) perspective, it is vital that firms design strategies that help to underpin competitive differential advantage for the firm's product or services. Accordingly, marcom activities back-up other elements in the marketing mix such as designing, branding, packaging, pricing, and place decisions in order to attempt to create positive effects in the minds of the consumers. In helping to achieve this, use of celebrity endorsers is a widely used marcom strategy. Companies invest large sums of money to align their brands and themselves with endorsers. Such endorsers are seen as dynamic with both attractive and likeable qualities (Atkin and Block, 1983), and companies plan that these qualities are transferred to products via marcom activities (Langmeyer & Walker, 1991a, McCracken, 1989). Furthermore, because of their fame, celebrities serve not only to create and maintain attention but also to achieve high recall rates for marcom messages in today's highly cluttered environments (Croft et al, 1996, Friedman and Friedman, 1979). Initially, this strategy seems to be low risk / extra gain situation, but as with any dynamic marketing strategy, there are potential hazards. Individuals can change and endorsement relations can sour.

DEFINING THE MEANING & SCOPE OF THE TOPIC Defining a 'Celebrity' Celebrities are people who enjoy public recognition by a large share of a certain group of people. Whereas attributes like attractiveness, extraordinary lifestyle or special skills are just examples and specific common characteristics cannot be observed,
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it can be said that within a corresponding social group, celebrities generally differ from the social norm and enjoy a high degree of public awareness. The term Celebrity refers to an individual who is known to the public (actor, sports figure, entertainer, etc.) for his or her achievements in areas other than that of the product class endorsed (Friedman and Friedman, 1979). This is true for classic forms of celebrities, like actors (e.g., Amitabh Bachchan, Shahrukh Khan, Rani Mukherjee, Preity Zinta, Aamir Khan and Pierce Brosnan), models (e.g., Mallaika Arora, Lisa Ray, Aishwarya Rai, Naomi Campbell, Gisele Buendchen, etc), sports figures (e.g.,Kapil Dev, Sachin Tendulkar, Zaheer Khan, Sourav Ganguly, Anna Kournikova, Michael Schumacher, Steve Waugh, etc), entertainers (e.g., Cyrus Broacha, Oprah Winfrey, Conan O'Brien), and pop-stars (e.g., Madonna, David Bowie) - but also for less obvious groups like businessmen (e.g., Donald Trump, Bill Gates) or politicians. Celebrities appear in public in different ways. First, they appear in public when fulfilling their profession, e.g., Vishwanathan Anand, who plays chess in front of an audience. Furthermore, celebrities appear in public by attending special celebrity events, e.g., award ceremonies, inaugurations or world premieres of movies. In addition, they are present in news, fashion magazines, and tabloids, which provide second source information on events and the 'private life' of celebrities through mass-media channels (e.g., Smriti Irani being regularly featured in various publications). Last but not least, celebrities act as spokes-people in advertising to promote products and services, which is referred to celebrity endorsement. 'CELEBRITY ENDORSEMENT' McCracken's (1989) definition of a celebrity endorser is, "any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement (marcoms), is useful, because when celebrities are depicted in marcoms, they bring their own culturally related meanings, thereto, irrespective of the required promotional role."

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Friedman and Friedman (1979) found empirical evidence that, in the promotion of products high in psychological and/or social risk, use of celebrity endorser would lead to greater believability, a more favorable evaluation of the product and advertisement, and a significantly more positive purchase intention. Thus, companies use celebrities to endorse their products, however, there are deeper attributes that are involved in celebrity endorsement. Celebrities

CELEBRITY ENDORSEMENT IN INDIA Phase 1: The Pioneering Phase (1950-1980) This phase was characterized by: 1. Limited channels of communication 2. Demand exceeded supply 3. Heavy regulation and governmental regulations Some bigger companies from their global experience introduced the concept of celebrity endorsement. HLL has used Hindi film stars to endorse their beauty soap Lux since the fifties. Phase2:TheGrowthPhase(1980-1990) The introduction of television added a variable effective medium of communication. Indian stars going global with events like Asiads and World Cup victory. Vimal, ThumsUp, Gwalior and Dinesh are some of the other brands that used star-appeal in the early days of mass advertising. There was a spurt of advertising, featuring stars like Tabassum

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(Prestige Pressure-cooker), Jalal Agha (Pan Parag Pan-masaala), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings). Phase3:Globalisation:In highly competitive markets, the following realities about brand management exist:1. Product differentiating factors are duplicable and imitable.

2. All long existing and successful brands imbue their products with a meaning. The meanings can not be ephemeral expressions but they have to be strategically decided consistent expressions where opportunity exists. This explains why a company like Nirma was not able to launch its tooth-paste product.

Therefore, for celebrity endorsements to work effectively there are some fundamental ground rules: The brand promise and the brand personality should be clearly articulated. The communication objectives for the campaign should be frozen. Focus must be on the synergy between the brand and the celebrity image Establish explicitly what the celebrity is going to communicate Framework to Make Effective Celebrity Endorsement Program With the cut-throat competition and continuously changing market dynamics, one has to assess the market conditions and re-evaluate its current marketing strategies such as its portfolio of celebrity endorsement. The action plan should be able to answer the following key questions: 14

 Are the celebrity endorsements programs result driven? How to quantify the value generated by the celebrity endorsements? Are customers able to connect the brand with the celebrity?

DECISION MAKING PROCESS & PURCHASE DECISION

Decades ago, John Dewey (1910) conceptualised decision-process behavior as problem solving - thoughtful, reasoned action focused on need satisfaction. As Ajzen and Fishbein (1980, p.5) put it, "Human beings are usually quite rational and make systematic use of the information available to them... People consider the implications of their actions before they decide to engage or not to engage in a given behavior."

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A lot of marketing research has shown that consumer decision follows the sequence of need recognition, search for information, alternative evaluation, purchase, and then outcome. The sequence can have major variations, however, from one situation to the next in terms of the extent to which each of these steps is followed.

BRAND-TYPE MATCH FOR SUCCESS OF CAMPAIGNS In India today, the use of celebrity advertising for companies has become a trend and a perceived winning formula of corporate image-building and product marketing. This phenomenon is reflected in the recent market research finding that 8 out of 10 TV commercials scoring the highest recall were those with celebrity appearances. A few examples:

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Sachin Tendulkar-Adidas, Sourav Ganguly-Britannia, Leander Paes and Mahesh Bhupati-J. Hampstead, Shah Rukh Khan-Pepsi, Sushmita Sen-Epson and Aishwarya Rai-Coke. The effectiveness of the endorser depends upon the meaning he or she brings to the endorsement process1.

An advertisement is a medium through which a brand gets a personality and endorsers are perceived as the personalities of the brand. Therefore, as it is essential to bring a synergy between an individual's outfit and his personality, the same way it is essential to bring a synergistic effect between the brand and the endorser. For example, with the Cadbury's worm issue, the brand wanted to build a trust amongst the customers in order to regain its market share. They chose Amitabh Bachchan as an endorser to build that trust and in order to regain their market share. According to the sales data, it was found out that the right celebrity selection gave the right results to them. Often celebrity endorsement in India is considered to develop required image which can influence the decision making process of your customers. But due to the lack of compatibility between the celebrity and brand, the celebrity can't do their part of job. Instead, the celebrities confuse your target customers in their decision making process. The impact of wrong celebrity endorsement is decline in competitive advantages of the organization & huge loss both in terms of money (Advertising and other Marketing Expenditure involving the celebrity & the Endorsement amount which are generally very high and brand equity in India.
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Deesha Communications, with its strong expertise in celebrity endorsement study in India, has developed a strong statistical model to conduct comprehensive feasibility study for any endorsement. In the celebrity endorsement process, we understand the Brand Objective of your brand, it's positioning in the industry and the budget allocated for the endorsement in India. For an intelligent endorsement & strong compatibility between the celebrity and the brand, we apply our own developed model to optimize the compatibility between the brand and the celebrity, which is to enhance the brand equity influencing the perception and purchasing decision-making process in a positive manner. In the process we also consider all the risks involved with the celebrities before coming up with celebrity endorsement solutions in India. We also provide consultancy to our clients to utilize the celebrity endorsement in the best possible manner in the specified contract duration. Celebrity endorsements have several benefits, like building credibility and getting attention of the public, which can translate into higher sales. Basically, celebrity endorsements are being preferred for almost every kind of product categories, like toiletries, telecom, readymade garments, razor blades, hotels, soft drinks and hard drinks among others. The most of the big companies have developed a new strategy to enrol celebrities and make them brand ambassadors of their products to increase the product sale.

But, many risks have also been associated with such celebrity endorsements. The brand will flop as quickly as it moved up in the market despite well-known celebrities endorsing them. The film personalities who are well known to shape destinies cast enormous influence on customers. The companies like Parker, ICICI and Dabur have used Amitabh Bachchan remarkably well, while some others have been unable to exploit his Big B status. The endorsement of Hyundai Santro or Airtel by Shah Rukh Khan has worked well for the actor as well as for the brands. Khan also canvassed the image of a metro-sexual man when he was seen endorsing Lux soap, which was usually treated as a
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womens soap earlier. Celebrity endorsement is, therefore, capable of manifesting both favourable and adverse effects for the brands with which they associate. When a celebrity is on the ascent it makes sense to hook the product to the star and derive maximum benefits before the star status fades away. The returns of celebrity endorsements, like any other advertising, are not easy to measure. The benefits accrue over a period of time, with the celebrity campaigns and other factors contributing to the overall increase in the brand value. Celebrity endorsement is a strategy in brand communication where a celebrity acts as the ambassador and spokesperson for a brand. By endorsing the brand, the celebrity is certifying the brand's claim and position by extending his or her personality, popularity and stature to the brand. There are three essential aspects that brands must consider before embarking down the road of celebrity endorsement: 1. Attractiveness of the celebrity 2. Credibility of the celebrity 3. Meaningful connection between the celebrity and the brand

If one were to examine India Inc's endorsement deals in light of these three aspects, they don't hold up well; especially with respect to the third aspect. Very few of the endorsement deals in place establish any connection at all between the celebrity and the brand or product being endorsed. It is easy to see why Indian celebrities have jumped on to the endorsement bandwagon with gusto--greed is a powerful motivator. Understanding why Indian advertisers are so gung ho about celebrity endorsements, however, is a mystery. There is very little to suggest that the current crop of endorsement deals is effective or well engineered.
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deals is effective or well engineered. The success of any brand-celebrity pairing depends heavily on the credibility of the connection between the brand and the celebrity. Successful brand-celebrity collaborations come from the integrity of the relationship between brand and celebrity.

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CHAPTER-TWO

Literature Review
A study done by Pamela M. Homer and Rajeev Batra. in 2004 as The Situational

Impact of Brand Image Beliefs(Journal of Consumer Psychology, Vol. 14, No. 3, pp. 318-330, 2004) states that Results have implications for the growing literature on different types of brand imagery associations, as well as for future research on the processing of nonverbal stimuli, the measurement of non-functional brand beliefs, and consumer inference processes.
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A study done by Angela Byrne, Maureen Whitehead, Steven Breen in 2003 as The naked truth of celebrity endorsement (Journal British Food Journal, Volume: 105, Issue: 4/5, Page: 288 29) states that the field research with consumers and key informant interviews with advertising agency personnel who identified the criterion for the choice of Jamie Oliver. The extent to which the market place recognizes and consumers associate themselves with the image Jamie projects as a celebrity endorser for J. Sainsbury is explored.

A study done by Erdogan, Zafer B as Celebrity Endorsement in 1999 (Journal of Marketing Management, Volume 15, Number 4, May 1999 , pp. 291-314) seeks to explore variables, which may be considered in any celebrity selection process by drawing together strands from various literature. The result shows that trust quality is the most wanted variable for selecting a celebrity for endorsement of any product or service.

A study done by Kathleen A. Farrell, Gordon V. Karels, Kenneth W. Montfort, Christine A. McClatchy as Celebrity performance and endorsement value: the case of Tiger Woods in 2000 (Journal: Managerial Finance, Year: 2000 ,Volume: 26 ,Issue: 7 ,Page: 1 15) states that We do not find a relationship between Tigers tournament placement and the excess returns of Fortune Brands (parent of Titleist). This is likely due to Titleist being a very small contributor to the total market value of Fortune Brands. We also fail to find a significant relationship for American Express suggesting the market does not view a golfer endorsing financial services
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as credible. We do, however, find a positive and significant impact of Tigers performance on Nikes excess returns suggesting that the market values the additional publicity that Nike receives when Tiger is in contention to win.

A study done by Brian D. Till as Using celebrity endorsers effectively: lessons from associative learning in 1998 (Journal: Journal of Product & Brand Management ,Volume: 7 ,Issue: 5 ,Page: 400 409) states that principles such as repetition, overshadowing, blocking, belongingness, CS pre-exposure, association set size, and extinction are introduced and linked to specific managerial suggestions for improving the use of celebrity endorsers.

A study done by David H. Silvera, Benedikte Austad as Factors predicting the effectiveness of celebrity endorsement advertisements (Journal: European Journal of Marketing,Year: 2004,Volume: 38 ,Issue: 11/12 ,Page: 1509 1526) . Participants in two experiments examined written endorsement advertisements and were asked to infer the extent to which the endorser truly liked the advertised product and to rate the endorser's attractiveness, similarity to themselves, and knowledge of the product. Attitudes toward the advertisement, the endorser and the product were also measured. The resulting model indicated that product attitudes were predicted by inferences about the endorser's liking for the product and by attitudes toward the endorser.

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CHAPTER-THREE

RESEARCH METHODOLOGY Research is a careful investigation or inquiry specially through search of new facts. Research refers to search for knowledge. One can also define research as a scientific and systematic search for pertinent information on specific topic. The advanced learners dictionary of current English lays down the meaning of research as a careful investigation or inquiry or specially through search for new facts in any branch of knowledge.
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 Selection of the Topic:

Selecting this topic was quite difficult for us because it needs a vast study but I selected this topic because of its wider scope .My guide also heleped me to select this topic.
OBJECTIVES:

Major objective:
o To find the Impact of advertising done by CELEBRITIES. Impact of celebritys

Personality on final purchase decision of consumer. Other objective: To study what factors influence the purchase decision of consumers? To find the effect of celebrities on consumer purchasing decisions. To find out the most powerful celebrity for advertisement. To find out the comparative study of all the celebrity.

SAMPLE DESIGN:

Sampling is defined as the selection of some part of an aggregate. Sampling in simply the process of learning about the population on the basis of a sample drawn from it. Thus, in sampling instead of every unit of universe only part of universe is studied and the conclusion are drawn for the entire universe.
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In area of AMBALA, I did my survey . So these were the respondents where the study was to be focused. For this purpose I did a survey of these respondents. These respondents were visited in outlet and required data was collected from them. SAMPLE SIZE: 100 RESPONDENTS

SAMPLING TECHNIQUE: Non probability METHODOLOGY: Data collection Exploratory Random sampling Pilot survey through questionnaire Identify the attributes which play a significant role in building the consumer perception Identified factors

METHOD OF COLLECTING DATA:

The method used by me to collect the information is the secondary source. 1) Primary data, Questionnaire and Survey 2) Secondary data from newspapers, internet and magazines
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DATA SOURCES These were to type of data sources which were helpful in preparing this project report. i. Primary Data ii. Secondary Data The research plan can call or gathering secondary data, primary data or both. Secondary data consist of information that already exists somewhere having been collected for another purpose.

Primary Data: This marketing research project involved some primary data collection. The normal procedure was to contact the respondent and have their personal interviews together relevant information on the research topic. In this project the data collected through various respondents in this field is used as primary data. Secondary Data: Some of the records available within the internet on the topic acted as a source of secondary data.

TYPES OF RESEARCH DESIGN:

In my project work I used exploratory research, as it aim to answering question about sale, brand availability, service quality, distribution pattern etc.
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For conducting this study, Exploratory Research design was used, since: It is natural. It is flexible. It is useful to find out the most likely alternatives. It is appropriate, when hypothesis have been established. The objective of exploratory research is to find out new ideas, it is important to give respondents to greatest freedom of response have conducted individually or in depth interview, by which respondent asked to project themselves into a particular situation.

RESEARCH DESIGN A research design is the specification of methods & procedure for acquiring the information needed. This is overall operation pattern or frame work that stipulates information is to be collected from which sources and by what procedure. ANALYSIS

Ideal mix of attributes according to customers Attribute mix which leads to store change Use of Pie Charts

SCOPE OF THE STUDY:

Knowing about the advertising world Knowing about the celebrity aspect of advertising Use of this study for further study

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SIGNIFICANCE OF THE STUDY: Knowledge of attributes to used for selecting a celebrity for an Knowledge of benefits of using celebrities in advertisements Effect of using celebrities in advertisements LIMITATIONS OF THE STUDY: Time span for the study was limited Ignorance by some people Limited sources for study

advertisement

Every coins has two sides in the same way while during our project analysis we also come across such things that created problem for us. These are listed below:1. Sample Size: Sample size was very small so the result may not be generalized for the whole population. 2. Time Factor: To carry out the project more time is required so as to gather and compare data from every possible source because of less time the study has a limited scope. 3. Geographical area covered in the survey was limited. 4. Biasness on part of the respondents can be there. Many respondents wanted an additional aid to fill in response. So the information gathered may include some errors.

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CHAPTER-4

ANALYSIS AND INTERPRETATION

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1. Education. a. Graduate b. Post graduate c. Under Graduate d. Other NO.OF RESPONDENT 60 20 10 10

QUALIFICATION GRADUATE POST GRADUATE UNDER GRADUATE OTHER

OTHER, Under 10, 10% Graduate, 10, 10% Post Grauate, 20, 20% Graduate, 60, 60%

Graduate Post Grauate Under Graduate OTHER

INTERPRETATION: This figure shows that most of the respondents are graduate.

2. Occupation. A. Businessman B. Service man D. Other OCCUPATION NO.OF RESPONDENT

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C. Professional

BUSINESSMAN SERVICE MAN PROFESSIONAL OTHER

30 40 20 10

OTHER, 10, 10% PROFESSI ONAL, 20, 20%

BUSINESS MAN, 30, 30%

BUSINESSMAN SERVICE MAN PROFESSIONAL OTHER

SERVICE MAN, 40, 40%

INTERPRETATION: This figure shows that most of the respondents are service man.

3. Age a. 0-20 c. 41-60 b. 21-40 d. 60 & above Age 0-20 21-40 41-60 61 &above No. of Respondents 12 42 28 18
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60 & above, 18, 18%

0-20, 12, 12% 0-20 21-40 41-60

41-60, 28, 28%

Gender Male Female

21-40, 42, 42%

NO OFabove 60 &

RESPONDENTS 35 65

INTERPRETATION: The figure shows that most of the respondents are from 21- 40 years of age.

4. Gender a. Male b. Female

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, , 0% Male, 35, 35% Male Female Female, 65, 65%

INTERPRETATION: According this figure the number of female in respondents are more.

5. Income a. 0-10000 b. 10001-20000

c. 20001-30000 d. 30001 & above

NO. OF Income RESPONDENT

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0-10000 10001-20000 20001-30000 30000 & above

54 18 22 6

30000 & above, 6 2000130000, 22 0-10000, 54 1000120000, 18 0-10000 10001-20000 20001-30000 30000 & above

INTERPRETATION: This figure says that most of the respondents have income from 0-10000 rupees. 6. Do you watch Television?

NO. OF Response Strongly Agree Agree Neutral Disagree Strongly Disagree RESPONDENT 70 30 0 0 0
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Stongly Disagree,00 Neutral, Agree, 30 Stongly Agree Agree Neutral Stongly Agree, 70 Disagree Stongly Disagree

INTERPRETATION: This figure says that most of the respondents watch television.

7. Do you change channel whenever an advertisement flashes on T.V?

NO. OF Response Strongly Agree Agree Neutral Disagree Strongly Disagree RESPONDENT 48 23 4 22 3

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Strongly Disagree, Disagree, 3 22 Neutral, 4 Agree, 23 Strongly Agree, 48 Strongly Agree Agree Neutral Disagree Strongly Disagree

INTERPRETATION: According to this figure most 48 people agree that they change channel whenever an advertisement appears on T.V.

8. Have you seen celebrities in advertisements?

NO. OF Response RESPONDENT Strongly Agree 62 Agree 21 Stongly Neutral 17 17 Neutral, Disagree, 0 Stongly Agree Disagree 0 Agree Strongly Disagree 0
Agree, 21 Stongly Agree, 62 Neutral Disagree Stongly Disagree

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INTERPRETATION: According to this most of the people agree that they have seen celebrity ads.

9. Do you think celebrities make ads more effective?

NO. OF Response Strongly Agree Agree Neutral Disagree Strongly Disagree RESPONDENT 56 28 6 7 3

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Strongly Disagree, 3 Disagree, 7 Neutral, 6 Strongly Agree, 56

Strongly Agree Agree Neutral Disagree Strongly Disagree

Agree, 28

INTERPRETATION: According to this figure 56% respondent agree that celebrities make ads more effective.

10. Do you think celebrity ads effect the purchase decision of a customer?

NO. OF Response Strongly Agree Agree Neutral Disagree Strongly Disagree RESPONDENT 49 35 5 8 3

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Strongly Disagree, 3 Disagree, 8 Neutral, 5 Strongly Agree, 49 Agree, 35

Strongly Agree Agree Neutral Disagree Strongly Disagree

INTERPRETATION: This figure shows that a good percentage of respondents agree that celebrity ads effect their purchase decision.

11. Have you ever bought any product after being seen it endorsed by a celebrity?

NO. OF Response RESPONDENT Strongly Agree 61 Agree Strongly 20 Disagree, NeutralDisagree, 0 6 13 Disagree 13 Strongly Agree Neutral, 6 Strongly Disagree 0 Agree
Agree, 20 Strongly Agree, 61 Neutral Disagree Strongly Disagree

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INTERPRETATION: According to this figure 61% of respondents agree that they have purchased products after being seen them endorsed by a celebrity.

12. Do you think the celebrities who advertise few brands are trust worthier?

NO. OF Response RESPONDENT Strongly Agree 58 Agree 12 Neutral 6 Strongly Disagree Disagree, 3 21 Disagree, Strongly Agree Strongly Disagree 3 21
Agree Neutral, 6 Agree, 12 Strongly Agree, 58 Neutral Disagree Strongly Disagree

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INTERPRETATION: According to this figure 58% respondents agree that they think the celebrities being endorsed are trustworthier.

13. Do you think the celebrities endorsed in ads are attractive enough in the respective ads?

NO. OF Response RESPONDENT Strongly Agree 51 Agree 31 Strongly Neutral 9 Disagree, Disagree, 2 7 Strongly Agree Neutral, 9 Disagree 2 Agree Strongly DisagreeStrongly 7
Agree, 51 Agree, 31 Neutral Disagree Strongly Disagree

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INTERPRETATION: According to this figure 51% of respondents agree that the celebrities endorsed in ads are attractive enough in the respective ads.

14. Do you think the celebrity endorsement helps in Brand recall?

NO. OF
Strongly Response Disagree, 4 Disagree, 9 Neutral, 8

Strongly Agree Agree Strongly Neutral Agree, 44 Disagree Strongly Disagree Agree, 35

RESPONDENT 44 Strongly Agree 35 Agree 8 Neutral 9 Disagree Strongly Disagree 4

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INTERPRETATION: According to this figure 44% of respondents agree that the celebrity endorsement helps in Brand recall.

15. Do you think the celebrity endorsement helps in better Brand recognition?

NO. OF Response Strongly Agree Strongly Agree Disagree, Neutral 10 Disagree, Disagree 13 Strongly Disagree
Neutral, 11 Agree, 25

Agree, 41

RESPONDENT 41 25 11 13 Strongly Agree Strongly Agree 10

Neutral Disagree Strongly Disagree

44

INTERPRETATION: According to this figure 41% of respondents agree that the celebrity endorsement helps in better Brand recognition.

CHAPTER-5
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FINDINGS AND CONCLUSION

FINDINGS 1. Majority of respondent associate quality of product with the celebrity, which shows that celebrity advertisement, is really effective as such consumers easily trust ads. 2. Majority of purchasing decisions were influenced by; advertising followed by friends and family. 3. A major part of the sample taken thinks that celebrity ads are more effective. CONCLUSION Companies using celebrities for promoting their products and to increase the sale of their products is Celebrity Advertising.
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In India today, the use of celebrity advertising for companies has become a trend and a perceived winning formula of corporate image building and product marketing. As main objective of my research is to find the effect of celebrities on consumer purchasing decisions. And through this research i have found that multiple endorsements do clutter the minds of the consumer. Celebrity endorsements do work in the Indian scenario. The level and the magnitude of the effect vary with the celebrity and the product category but most endorsements have a favorable impact.

CHAPTER-6
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SUGGESTIONS AND RECOMMENDATIONS

Companies should select celebrities matching to the attributes of the product The celebrity should be who can be recognized by customers The celebrity should be one who should be popular among the audience Over use of celebrity endorsement should be avoided.
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49

Annexure (s)

QUESTIONNAIRE

Name.. 1. Education. a. Graduate b. Post graduate 2. Occupation. A. Businessman B. SERVICE man e. Other
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c. Under Graduate d. Other

c. Professional d. Ex-serviceman

3. Age. a. 0-10 b. 10-20 e. 40-50 4. Gender. a. Male 5. Income. a. 25000-50000 c. 100000-150000 b. 50000-100000 d. 150000-200000 b. Female c. 20-30 d. 30-40

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Questions Ques1. Do you watch Tele Vision?

Strongly Agree 5

Agree 4 2 4 4 4 4 4 4 4

Neutral Disagree Strongly 3 3 3 3 3 3 3 3 3 2 4 2 2 2 2 2 2 2 Disagree 1 5 1 1 1 1 1 1 1

Ques2. Do you change the channel whenever an 1 advertisement flashes on T.V? Ques3. Have you ever seen celebrities in 5 advertisements? Ques4. Do you think celebrities make ads more 5 effective? Ques5. Do you think celebrity ads effect the 5 purchase decision of a customer? Ques6. Have you ever bought any product after 5

being seen it endorsed by a celebrity? Ques7. Do you think the celebrities who 5 advertise few brands are trust worthier? Ques8. Do you think the celebrities endorsed in 5 ads are attractive enough in the respective ads? Ques9. Do you think the celebrity endorsement 5 helps in Brand recall? Ques10. Do you think the celebrity endorsement helps in better Brand recognition?

BIBLIOGRAPHY BOOKS
1. Kothari C.R., Research Methodology Methods and Techniques , Chapter 4, Page

55-58. Chapter 6, Page 95,100,111.\

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WEBSITES
1. http://www.rediff.com/money/2003/dec/05guest.htm 2. http://ries.typepad.com/ries_blog/2007/07/celebrity-endor.html 3. http://www.helium.com/items/688146-advertising-getting-celebrity-endorsements-

for-your-products

JOURNALS 1. Rajeev Batra, Pamela M. Homer, Journal of Consumer Psychology, Vol. 14, No. 3, pp. 318-330, 2004 2. Angela Byrne, Maureen Whitehead, Steven Breen, British Food Journal, Volume: 105 ,Issue: 4/5 ,Page: 288 29 3. Kevin Gwinner, International Marketing Review, 1997 ,Volume: 14 ,Issue: 3 ,Page: 145 - 158,

LIST OF TABLES

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Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Table Title Respondent Qualification Respondent Occupation Respondent Age Respondent Gender Respondent Income Watching T.V response Channel Changing response Watching Celebrity Ad response Celebrity Effectiveness response Purchase Decision response Product Purchase response Celebrity Trustworthiness response Celebrity Attractiveness response Brand Recall response Brand Recognition response

Page No. 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

LIST OF FIGURES Sr. No Figure Title Page No.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Framework to Make Effective Celebrity Endorsement Program DECISION MAKING PROCESS & PURCHASE DECISION Respondent Qualification Respondent Occupation Respondent Age Respondent Gender Respondent Income Watching T.V response Channel Changing response Watching Celebrity Ad response Celebrity Effectiveness response Purchase Decision response Product Purchase response Celebrity Trustworthiness response Celebrity Attractiveness response Brand Recall response Brand Recognition response

13 14 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

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